If the Canadian dollardepreciatesagainst the U.S dollar, our exports to the U.S increase as our products become relatively cheaper. This is an example of the

Question 6 options:

import effect

export effect

income effect

law of one price

Question 7(1 point)

When Vladimirsells bondsandgets money, hisliquidity

Question 7 options:

decreases, and he also gives up interest

decreases, but he gains interest

increases, but he gives up interest

stays the same

Question 8(1 point)

Which of the following best illustrates the double coincidence of wants

Question 8 options:

Both Tom and Jerry would like to purchase the same good

Tom finds something he's willing to trade to Jerry; Jerry finds something he's willing to trade to Tom

Tom and Jerry have very similar tastes; hence, Tom's wants coincide with Jerry's

Tom has something he's willing to trade to Jerry, who wants it; Jerry has something he's willing to trade to Tom, who wants it

Question 9(1 point)

Mary Ellen deposits $100 into her savings account every month for future use. Her daughter Carolyn keeps all her pennies in a piggy bank. These are examples of money functioning as

Question 9 options:

commodity money

a store of value

a unit of account

a medium of exchange

Question 10(1 point)

The Bank of Canada's inflation-control target is an inflation rate

Question 10 options:

between 1 and 2 percent

between 2 and 3 percent

between 1 and 3 percent

of 0 percent, or no inflation

Question 11(1 point)

To achieve its inflation-control target, the Bank of Canada focuses on the

Question 11 options:

10-year government bond rate

prime rate

3 month treasury bill rate

overnight rate

Question 12(1 point)

If the Bank of Canada is worried about inflation, or that the economy is doing too well, it will ________ the overnight rate to ________.

Question 12 options:

raise; increase potential GDP

lower; increase aggregate demand

raise; decrease aggregate demand

lower; decrease the velocity of money

Question 13(1 point)

A rise in interest rates is effectivelya rise in the price of money. According to the law of demand for money, a rise in the interest rate will causes a(n)

Question 13 options:

decreasein the quantity demanded of money

increasein aggregate demand

decreasein the cost of borrowing money

increasein the demand for money